FOREX — Dollar hovers near 2 — month peak, Swiss Franc falls, Norwegian crown rises

Dollar treads water as markets assess US rate outlook Swiss Franc up, Norwegian crown down after central bank decisions Japanese yen slips to lowest level in three weeks (Adds reaction to SNB, Norges Bank and Riksbank decisions) By Stefano Rebaudo Sept 24 (Reuters) — The dollar steadied near a two-month high on Thursday after a sharp rally fuelled by expectations of additional Federal Reserve interest rate hikes following strong economic data and a hawkish shift in rhetoric.

Meanwhile, the Swiss Franc fell against the euro and the dollar after the Swiss National Bank left rates unchanged, as expected, while reiterating its willingness to be active in the foreign exchange market. Previously it said it had an increased willingness to intervene in the foreign exchange markets to counter excessive franc strength. 50% on Thursday and said it may hike again. 828, its lowest level since May 2025.

457 against the dollar. 9070 versus the dollar. 75%, as expected, while flagging stronger growth and the risk that inflation will pick up in the months ahead. Us Rate Outlook In Focus Two-year Treasury yields, highly sensitive to policy rate expectations, hit their highest since May 2024 after posting their biggest daily rise since April 2025 on Wednesday as strong business activity data reignited inflation concerns.

The Fed raised rates and signalled further tightening last week, with Chair Kevin Warsh stressing the central bank's independence despite repeated calls from President Donald Trump for lower borrowing costs. The hawkish stance has eased concerns that a Warsh-led Fed would take a softer line on inflation, a prospect that could have weighed on the dollar and other US assets. "Very strong US PMIs, higher oil prices and soft risk sentiment have all contributed to the bullish narrative, although the move is starting to look stretched relative to fundamentals," said Francesco Pesole, forex strategist at ING.

" Investors closely watched energy prices and geopolitics with Brent crude slightly up after jumping overnight as Iran and the United States remain far apart on how to end the war. The greenback tends to strengthen when oil prices rise, as investors often sell currencies of energy-importing economies such as the euro and yen, whose trade balances are more vulnerable to higher crude costs. 23 on Wednesday, its firmest since July 29. 1369.

Yen Near Highest In Three Weeks Japanese Finance Minister Satsuki Katayama said the principles underpinning the coordinated Japan-US currency intervention in July remain intact, signalling Tokyo is prepared to act jointly again if needed. The remarks briefly supported the yen, though sentiment remained fragile after last week's Bank of Japan rate hike to a 31-year high failed to convince investors that a faster tightening cycle is in store. 59, its highest level since September 3.

"The yen is another currency that may find the going tough in the coming weeks although the ever-present threat of forex intervention should help temper the rise in the dollar/yen," said Daragh Maher, senior forex strategist at HSBC. com)